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Posts Tagged ‘DOE’

Tim Williams Encouraged by Regulatory Freeze Ordered by President Trump

January 23rd, 2017 No comments

I am deeply encouraged that less than 24 hours into President Trump’s term, he has frozen new, potentially burdensome regulations.

The immediate impact assists working people and those on fixed incomes – as well as others of low and moderate income – to realize the dream of affordable manufactured homeownership and cannot be overstated.

Onerous regulations were in the process of adoption by the previous administration that would have added thousands of dollars to the cost of manufactured homes, thus pricing tens of thousands of Americans from realizing the dream of homeownership.

Those regulations range from excessive energy mandates, to overkill foundation rules, as well as needless additional regulation of home construction.

TimWilliamsOnTrumpFreezeofRegulationsPostedIndustryVoicesMHProNews

Image credit, MHProNews. The headline and image are provided by the editor.

Manufactured homes are the ONLY form of housing where each home is rigorously inspected and approved by government in the design, construction, and home placement process.

The strong existing consumer protections will continue without the regulatory over kill which would have stifled expanded homeownership and cost thousands of construction jobs. ##

tim-williams-ohio-manufactured-home-association-mhpronews

Tim Williams, OMHA.

Tim Williams
Executive Director
Ohio Manufactured Homes Association (OMHA)
244 Bradenton Avenue
Dublin, Ohio 43017

MHGrassroots: A Call to Action

June 17th, 2014 No comments

As I sit comfortably in a 737 at 30000 feet coming back from a thought provoking meeting at the MHI Expo in Las Vegas I don't have to go in great detail on how the world has changed since 2001.

From how we fly, how we communicate, and even how we conduct business, it has all changed in ways none of us truly imagined then.

Every day I read more about how a government I have grown up loving, is making changes that contradict the core beliefs and attributes it was built upon. With that said, let's look at a few issues that have faced, primarily as it relates to the manufactured home market in the past 15 years.

In Texas we were asleep at the wheel in 2001 when House Bill 1869 took effect. I was but one of the many independent dealers who were wondering how this could have happened. I even looked Gov. Rick Perry in the eye and told him point blank that this bill would cost Texans jobs and would reduce home order sales, which in turn would force the closing of several fine manufacturing plants.

Unfortunately I and those around me were right. Even though the TMHA through a lot of hard work was able to have this poor piece of legislature repealed in 2003, the damage was already done.

I won't go into the specifics of the law itself, but I will say it was a killer from day one. If you have any questions about it, just Google it. I have heard the experts’ state that 85% of the independents who were in the market at that time were wiped out by this law and the recession that hit us in 2008. And guess what. Those folks are gone, probably never to return again.

So let's take a look at where the train came off the tracks.

We were too late to stop one train simply because we weren’t aware it was heading for the station.

If we want to be successful in the legislative arena we have to stop the bills before they get that close to the tracks. We, the industry as a whole, must be vigilant in being aware of any laws, in every city, county, state and federal arena that could negatively impact not only us, but the people around us.

This means we have to know, and have a relationship with, the people in charge. Governor Perry signed that bill even after I told him the truth. Why? Simple, he didn't know me from Adam. No relationship equals no traction. We have to build those relationships in order for our voices to not only be heard but to be accredited.

How was it fixed? A grassroots effort. From the ground up. TMHA called upon every member….who in turn called on every state senator and state representative to repeal a bad piece of legislation. And it worked! Why? Because the industry stood up as a whole, and worked together for the common good of all. I call this a victory for the good guys.

Let's look at another victory.

Last year I received a phone call from a landlord who was my ‘competitor’ in Plainview, Texas. I use that word competitor only because we are after the same pool of customers. I call him a friend.

Basically this city was in the process of creating a city ordinance which would require an inspection on every rental inside the city once it was vacated by a tenant. Never mind the fact that this would be in direct contradiction to the HUD code on a manufactured home. Every house, apartment, and mobile home would have to be brought back to current code if this law passed.

This would mean thousands of dollars spent to update every unit.

One unintended consequence of this law would have forced the citizens to pay rent in excess of three times the current rate.

Another would have riddled the city with homes to be demolished due to the repair cost being more then the value of the home.

Yet another would have been a mass exodus of good paying tenants to the surrounding communities which didn't have this law.

So how did we stop this calamity before it was passed like Texas House Bill 1869?

We showed up in droves. There was standing room only at every hearing. Meetings with every city official we could get and we killed it before it could even be heard by city council. How? It took one phone call from each of us who took the time to make that call. And another victory ensued.

So what does all this mean to you, the reader?

It's time. It is time to make a difference and make a call of your own.

I know you are busy, but don't blow this one off.

Dodd Frank and the SAFE Act are not going away. So what are you going to do? I am calling not only those of us in the industry, but all of us.

The government doesn't need us, but this country does. We are this country's answer to affordable housing. But if the people can't get financing for that home what good are we to them?

If you don't know who to call that's ok. Call your state association. If you are not a member, sign up. If you are a member, get active. Make a difference. You can. ##

shawn-fuller-d-r-housing-new-deal-texas-industry-voices-manufactured-housing-mhpronews-com-75x75-Shawn Fuller
D & R Housing, LLC.
New Deal, TX 79350

Why Retailers and Community Operators should go to Tunica!

March 19th, 2014 No comments

As I read the digital 2014 Tunica Show brochure and business building and profit protecting seminar line up, it became crystal clear why Retailers and Community Owner/Operators ought to be in Tunica next Wednesday morning through Friday at noon (March 26-28)!

Retailers and Communities can get free:

  • Networking with your peers,
  • Compare Manufacturers side by side, over 80 homes will be on display!
  • Compare products and services needed by your business side by side,
  • Get the latest on Manufactured Home Lending available TODAY, from all the major lenders all under one roof.
  • Get expert guidance on Commercial Lending on MH Communities,
  • Get marketing and sales tips in the Dominate Your Local Market 2.0 Seminar, featuring manufactured housing marketing and sales veteran, L. A. “Tony” Kovach.
  • Compare CRM products in a free panel discussion with Scott Stroud and myself, and learn why they are a key to growing your sales in 2014 and beyond.
  • Get success tips on MH Communities (MHCs) from pros with successful firms who know!

Let me give you a quick snapshot of the last bullet point above, which will provide the reasons you need to grab your business cards, and have your photo ID so you can enter the Tunica Show, free!

In the last decade, as the numbers of retailers and shipments declined, manufactured home communities (MHC) have of necessity become on-site-home leasing and selling operations.

Communities have always had to do the types of services and duties that developers and multi-family operations have provided in the conventional housing world.

Tunica has become a magnet in recent years, attracting more communities as well as more retailers than in prior years.

Here is the line up of on the panel for MHC Lessons Learned, to be held Thursday, 10:00 AM – 10:55 AM on March 27th.

Success Tips from Manufactured Home Community Owners & Executives!

For anyone in or thinking about getting into the land-lease community business, this panel discussion is for you! Hear practical tips from community operators that can help you operate your community more professionally and profitably.

jenny-hodge-national-coummunities-council-ncc-industry-voices-manufactured-housing-pro-news

Jenny Hodge, Vice President of the National Communities Council (NCC), will be your panel moderator.

You can learn more about Jenny in this month's MHProNews exclusive interview A Cup of Coffee with…Jenny Hodge.

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Among those on the three person MHC panel is Tammy Fonk, an Associate with the CBRE MH/RV National Group. Tammy was born and raised in the MH industry with two family owned communities. She operated the family owned company's sales and marketing business as well as having an active role in day to day community operations and resident relations. As a member of the MHRV Team, Tammy now works closely with public and private investors on building business relations and opportunities to enhance the Manufactured Housing Industry as well as the RV Resort and Marina properties in North America. Tammy works with owners and buyers of small, medium and larger communities in addition to representing large portfolio owners.

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Maria Horton is a regional manager with West Coast powerhouse, Newport Pacific. Maria's bio is linked here, but having met her, let me tell you what her resume doesn't say. This is a warm, delightful engaging professional! You will love to hear here insights and experiences on this panel discussion.

rick-rand-great-value-homes-l-sam-zell-equity-lifestyle-properties-els-chair ... layton-clayton-bank-chairman-industry-voices-manufactured-home-pro-news

Rick Rand (l), Sam Zell (c), Jim Clayton (r)

Last and not least, is Rick Rand, who made quite a stir recently with this guest column. Rick was the subject of another MHProNews.com interview, A Cup of Coffee with…Rick Rand.

If online registration for the Tunica Show is closed by the time you read this, don't worry! You can bring your business card and a photo ID, retailers, communities, builder-developers, realtors and installers will be able to sign up at the door, free with those credentials!

Let me close with a tip of the hat to L. A. Tony Kovach. Dennis Hill recently gave Tony quite the well deserved public shout-out, for his key role in the come back of the Louisville Manufactured Housing Show.

Community Operations executive Ted Gross, with Continental Communities praised his session as being the best marketing presentation he had seen since coming into the MHC business.

We've worked with Tony about 90 days now, and let me tell you from first hand experience his deep passion for the MH Industry.

Tony cares about the success of people, operations and loves to see happy consumers enjoying our product.

I don't personally know of anyone who gives more time away for the benefit of the industry.

Tony's consulting and banner ads have helped our company's growth and presence in MH significantly! On MHProNews, he brings out the articles, experts and tackles the topics others shy away from, and is a friendly, peace loving professional and family man.

When you think about it, Tony's efforts to inspire our industry to do more and grow at shows like Louisville and Tunica are part of the rising tide of sales in our industry. You may or may not know it yet, but he makes you money just by being here and spreading the good word about our industry on sites like ManufacturedHomeLivingNews.com and here on MHProNews.com.

These are among the reasons why I'll be voting for him as MHI Supplier of the Year, and I hope others that read this will consider doing the same.

We will be at booth 13H in Harrah's Convention Hall. Change your plans! Make your travel arrangements! Fly, drive or hitch a ride, but we hope to see you in Tunica for the 2014 Tunica Manufactured Housing Show! ##

brad-nelms-coo-manufactured-homes-com-posted-mhpronews-comBrad Nelms
COO
ManufacturedHomes.com

9 Reasons Why You Need CRM

January 15th, 2014 No comments

Customer Relationship Management (CRM) is nothing new; it’s been around since the days of the Rolodex. Tickler files, ledgers, manifests, and even the ‘little black book‘ are relationship management tools that date back for centuries. But CRM has never been more important to closing sales than it is today.

Unless you do business on a very low scale (or work for only one or two clients) you are wasting precious time and missing sales opportunities if you’re not putting a CRM system to work for you. Here are 9 reasons why you need an effective CRM in your business:

Speed

Face it – the bulk of your leads and new customers likely come from online advertising – your website, directories, etc. If your customers find you on the web, they expect you to do business at the speed of the web, i.e., instantaneously. An effective CRM system should capture leads from online sources and send a response to new inquiries instantly and automatically.

The Fallibility of Memory

“The weakest ink is better than the strongest memory,” so the saying goes. And it’s true. Today’s sales professional is just too busy – and the workplace too hectic – to rely on memory alone to follow up with potential buyers. Without a single, organized place to record all client data, you will end up missing important communications – and losing sales. If you’ve ever grabbed whatever piece of paper is handy to record notes from an incoming phone call (and then lost or thrown away that paper as trash), then you know why you need a better system.

Awareness

Once you’ve attracted and recorded a new lead, you need a means to nurture their interest and remain front of mind with them. An effective CRM system will prompt you to keep in touch with prospects with relevant communications that address their key interests. Really good CRM systems will allow you to automate much of this process, including emails, phone calls, letters or post cards, and appointments. The goal: encourage a face to face meeting in your sales center.

Response

Nothing says “your not important; I don’t care” like failing to respond to a prospect’s question. Or not following up with them in a personal way. Or forgetting their name or the model or lot they’re interest in. An effective CRM system keeps all that information handy and accessible by computer, tablet or smart phone, and alerts you when you to appointments, incoming emails, or when it’s time to follow up with a phone call. And really good CRM systems allow you to store all relevant files – letters, plans, photos, etc., in the same place, so you always have every piece of information you need at your fingertips.

Management

So far, we’ve given valid reasons why every salesperson should use a CRM system. But it doesn’t stop there. If you manage a sales team, you need to know what opportunities are in the pipeline, which prospects are the most likely to close quickly, and what you can do to help move those urgent sales forward. You also need to see that every prospect is being properly followed up with by the sales consultant, and to give additional training and help where it’s needed. An effective CRM allows you to accomplish all that, and more.

Reports and Projections

What are your most effective lead sources and ROI from advertising? What are your projected sales (units and/or dollar volume) for the next month, quarter, and year? What is the average closing rate for your sales team? For individual salespeople? What is your average closing time, from initial contact to close? An effective CRM answers those questions and allows you to better manage your sales team, your advertising and your cash flow.

Service

Because your CRM program allows you to schedule appointments, tasks and alerts, you’ll be able to keep up with service calls or punch lists quickly, without ever worrying that an important call with fall through the cracks. Do you do annual maintenance, reviews, maintenance or renewals? Schedule these in your CRM, with alerts 30-days prior to the scheduled date to send notifications to customers and/or service agents. A really good CRM will automate these notifications and communications so you won’t have to.

Referrals

It should be the goal of every sales group to increase referral sales. A good goal is 30% – 40% of total sales. How do you reach that? By keeping in touch, servicing and nurturing existing customers or tenants. Every effective Customer Loyalty or retention program is powered by a CRM system. A CRM program will allow you to include past customers in any marketing events, such as open houses, seminars, or home shows, as well as send cards or congratulations on move-in anniversaries, for holidays, etc. A really good CRM will allow you to automate all of these processes, including alerts and email notifications, so that everything takes place seamlessly and without staff time to schedule.

Connectivity

While stand-alone CRM systems can provide all of the above, many will also connect and share data with other programs, such as your accounting program, inbound lead sources, rent or tenant management system, or point of sale program. This connectivity expands the value of a CRM to keep all customer data, from lead source to rent history, all in one place, saving time and avoiding ‘multi-system chaos’ that stifles use and frustrates business owners/managers.

So, there you have 9 good reasons to stop using that old, outdated spreadsheet or restrictive paper system and step up to a CRM system that will save you time, streamline your sales and marketing processes, and make your team more effective in closing more new and referral sales.

You should check out additional reasons to consider CRM at this story by Jason Brady linked below:

Start the Year off Right!

l-a-tony-kovach-scott-stroud-jason-brady-mhpronews-com1.jpg

Want to learn more? Then, join discussion moderator L. A. “Tony” Kovach, Jason Brady from ManufacturedHomes.com and me at the Louisville Manufactured Housing Show on Wednesday, January 23 at 9:30am SHARP for a special panel presentation on CRM for the Housing Industry. Go to this link at the www.TheLouisvilleShow.com site for details. ##

scott-stroud-posted-mhpronews-com-industry-voices-.jpgScott Stroud
180 Enchanted Dr.
Somerset, KY  42503
p. 606.677.04547

email:  sstroud@builderradio.com

(Editor's Note: The entire business building seminar lineup for the Louisville Show is linked here. It is currently the hottest page on their site, immediately after the home page!)

MHI 2013 Annual Meeting Recap

October 10th, 2013 No comments

IMHA Executive Director Mark Bowersox attended the Manufactured Housing Institute’s (MHI) annual meeting held September 28 – October 1 in Carlsbad, CA. As with most recent industry meetings, speakers and conversations at the event were focused on the impact of the Dodd-Frank consumer protection legislation and reforming the CFPB’s upcoming regulations. MHI and other industry representatives continue to work with the CFBP on three key areas:

Exemption for manufactured housing appraisal requirements

Based on the most recent rules issued by the CFPB loans on all new manufactured homes, regardless of whether or not they included land, are exempt from the appraisal requirement. Loans on existing manufactured homes, not including land, are also exempt from the appraisal requirements. Additionally, all mobile homes (pre-HUD code) home loans are exempt. The CFPB’s rule solidifying these exemptions is still pending. When finalized the rule will go into effect in January.

Key rule clarifications and exclusions

Loan originator compensation guidelines issued by the CFPB this summer provide the industry with key exclusions from the points and fees calculation that lenders must perform and clarifies certain activities that retail sales staff can engage in without being defined as loan originators.

Manufactured home sales price is excluded from the points and fees definition and does not have to be included in calculations performed by lenders unless a creditor has knowledge that the sales price includes compensation for loan origination activities.

 

Retail sales commissions paid to employees is excluded from points and fees calculation requirements unless the salesperson is receiving compensation from a lender for loan origination activities.

According to MHI, activities that do not classify a retailer or its sales personnel as loan originators include:

  • Providing or making available general information about creditors and loan originators that may offer financing for manufactured housing
  • Gathering or collecting supporting information or documentation on behalf of a consumer for inclusion in a credit application
  • Providing general credit application instructions so that a consumer can complete it themselves
  • Financing the sale of no more than three homes in a year.

Activities that will make a retail employee be considered a loan originator include:

  • Filling out a credit application for a customer
  • Discussing particular credit terms with a customer
  • Directing or influencing a customer to select a particular lender or creditor

MHI continues to seek from the CFPB to provide further clarification on what activities retailers can engage in without being defined as loan originators.

MHI is still working with the CFPB and various consumer interest groups on the need to revise the upcoming High Cost Mortgage Loan triggers for manufactured home loans. IMHA will continue to be engaged on this issue, along with MHI and other interested parties. ##

mark-bowersox-imha-posted-industry-voices-guest-blog-mhpronews.com-75x75pxl-.pngMark Bowersox
Executive Director
Indiana Manufactured Housing Association
Recreation Vehicle Indiana Council
3210 Rand Road
Indianapolis, IN  46241

(Editor's Note: You can find more info on the LO Comp Rule and HOEPA from DJ Pendelton's article published in the Industry In Focus Reports module, linked here.

 

You can also find Mark Bowersox's “It's Now or Never” featured article, linked here. )

Captive Finance Redux: Are you dealing with the Gestapo/NSA or Colonel Klink?

August 21st, 2013 No comments

Tony,
I've been delighted with the self-financing articles and feedback you have gotten on the subject. I've never doubted self-finance can be done properly, but that said, I don't think most can or will do it properly. Instead I believed the industry would often take the course many are revealing in your discussions; non-compliance, "I'll take my chances."

Interesting, but hardly surprising.

As I've written in the past, the various recent lending laws, federal and state, will and are having a demonstrable effect on the industry, likely to put the finishing touches on what little remains of the industry, reducing it even further.

Does this mean total death? Oh, I doubt that. Remember companies still sell buggy whips, not many, but they are still sold. As long as the industry continues to put people in homes who are not good at putting themselves in homes, a segment will remain. As will homes going on to owned land by those who trotted down to their friendly Hometown Bank, sat with their hard working banker and earned a loan for a HUD going onto their land.

Not many homes you say? Well, yes I agree with that. But some will still sell. Captive Finance will do some, but risky, unprotected self-financing will sell most homes. Is it illegal to speed? Yes, if you get caught. Obviously the same holds true for non-compliant lending.

There are few if any reports of originators of non-compliant loans being called to the gallows, or of loans declared invalid, (big deal in an industry with innumerable invalid loans), but, and this is the big one, still few if any reports of fines and crowbar motel residency. I suspect until the crowbar alternative becomes far more common, as with your various admitters, non-compliance will grow and perhaps even prosper. This leaves open whether in 1935 Berlin, oops, 2013 America, the Gestapo/NSA is checking the papers, or like Sgt Schultz, will see nothing. So far, they see nothing.

I have no doubt many of these offensive laws were carefully crafted to include MH, which leaves the futility of trying to change these laws to not include us as somewhat pathetic, but as an industry we still seek the get-out-of-jail card, which is in the deck right beside Marvin Place. These are both hard to get, kiddes.

So's, we's takes our chances, the "buyer" gets his desired home, the retailer/park owner gets a down-payment, resident, a stream of income and everyone lives happily after, until "innocent buyer" defaults and Illegal Aid gets involved, and reports the non-compliance to the massive Inadequate Buyer Protective Society. Then, the soggy brown stuff could hit the fan with the strong arm of The Man going full force against TrailerBoy. Ouch!

Can or will that happen? Well, yes it can, but will it? My 40 year experience with destructive retailer fraud on buyers was that it was little noticed by the authorities, it had to be BIG.

It remains to be seen whether we now will be dealing with Col. Klink or Buford T. Justice on non-compliance with this panoply of laws. For the sake of the MH self-admitted "misdirected," lets hope Klinky is still doing reruns and too busy to notice the industry's escape attempts.

But if it turns out these Alphabet Laws are actually enforced by Henrich Himmler's heirs, I'm not sure it is wise to be "non-compliant." Sometimes you have to admit the cards dealt are a very bad hand. It seems that way for MH and the spate of new lending laws.

I know one park owner who simply rents the home to the buyer for three years or until early default, which ever comes first. Once the buyer demonstrates a pattern of payments, he conveys the home, takes a promissory note not secured by the home, and hasn't found a big difference over his past experience with home sale with mortgage, etc. But he sleeps well knowing he might get his azz rumpled by the  borrower in this process, (so what is new?) but says at least at night he can sleep without the overhang of Att'y Gen Eric Holder visiting him for non-compliance.

Holder can bring those Philly Bad Guys from the voting place with their iron pipes to assure compliance. There is a true, Ouch! ##

marty-lavin-posted-on-mhpronews(2).jpgMARTIN V. (Marty) LAVIN
attorney, consultant & expert witness
Practice only in factory built housing
350 Main Street  Suite 100
BURLINGTON, VT 05401-3413
802-238-7777 cell  802-660-8888 office
Forget what people are saying, especially politicians. Instead, watch what is happening.” – Marty Lavin

 

Editor's Note: Marty's column is in response to these keenly read, linked articles:

Publisher Tony Kovach will plan a comment on this topic on the Masthead blog, to be published later on 8.21.2013

Manufactured Housing Consensus Committee 2012 Meeting Report

November 9th, 2012 No comments

The MHCC Holds First Meeting in 2012

Lois Starkey, Vice President, Regulatory AffairsThe Manufactured Housing Consensus Committee (MHCC) held its first and only meeting of 2012 on October 22nd – 25th to consider a number of recommendations for changes to the Manufactured Housing Construction and Safety Standards Program. HUD intended to have two meetings in 2012 but problems with the approval of a new contract for the Administering Organization, the National Fire Protection Association, resulted in a hastily arranged fall meeting in Arlington, VA. All but three of the 21 members were in attendance. Representatives from HUD included the Deputy Administrator of the HUD Manufactured Housing Program, the HUD engineering staff, and a representative from HUD’s office of General Council.

MHI was surprised and disappointed that higher ranking officials who oversee the program from the Department’s Office of Regulatory Affairs were not in attendance at any time during the meeting.

The Committee worked over two days to conclude work on all outstanding items before the Committee and to consider several new issues. This is despite the frustration voiced by MHCC members and MHI over HUD’s failure to implement dozens of recommendations of the MHCC over the last four years or more.

Highlights of the Committee Recommendations

Southern Yellow Pine Design Standards – By a 15-2 vote, the MHCC recommended that HUD delay implementation of the National Design Specification (NDS) for Wood for 2×2 and 2×4 southern pine lumber, effective January 1, 2013, until such time that it presents the MHCC with a proposal for changes to the existing standards as required by law, or until such time that HUD issues an emergency rule under Section 604(b)(5) of the Manufactured Housing Improvements Act of 2000. This is consistent with MHI’s petition to HUD earlier this year, and with MHI’s testimony before the committee.

Hinged Roof Assemblies – The MHCC voted 15-2 to recommend that HUD withdraw requirements for Alternative Construction Letters for certain types of hinged roofs designed for Wind Zone I until HUD clarifies current regulations regarding the on-site installation of hinged roof assemblies known as “double hinged” and “ridge box or peak cap” assemblies. The industry argued that such hinged roof assemblies do not need AC letters because they are constructed in the factory and are part of the “close–up” requirements under the installation standards, 3285,801(f). Members argued that methods for completing the installation of such homes are much less complicated than many multi-section home “close-ups.” These types of assemblies are common practice in the industry, and installers are trained and certified to complete these types of installations.

Wind Design Standards – The MHCC voted 17-0 to recommend that the reference standards of the American Society of Engineers (ASCE 7) wind design standards be updated to the 2005 version from the 1995 version, and the existing wind speed design requirements in the HUD Code be adjusted accordingly. However, the committee did not recommend any code changes regarding design requirements for wind pressure. It voted to maintain the current three wind zones as opposed to four. The new wind safety recommendations are the result of many hours of work by an industry led task force that included HUD and members of the ASCE-7 committee, who concluded that any new requirements beyond what the MHCC recommended would not be cost beneficial.

Indoor Air Quality – The MHCC concluded action on pending recommendations debated over the last four years, to improve ventilation and indoor quality in manufactured homes. In a unanimous vote, the MHCC recommended that the HUD Code provide for the voluntary use of ASHRAE 62.2, Ventilation and Acceptable Indoor Air Quality in Low-Rise Residential Buildings. In a change supported by MHI, the Committee voted to amend existing regulations to provide more flexibility in the types and size of ventilation systems that may be utilized to ensure adequate ventilation. (In a related issue, see information below on the GAO report).

Other MHCC Actions

In other actions, the Committee added new testing and certification requirements for certain types of vinyl siding; provided a new reference standard for Medium Density Fiberboard (MDF); updated and clarified language regarding construction methods; tabled a proposal regarding alternative foundation designs; rejected a site drainage proposal; rejected updated testing and certification requirements for windows and sliding doors; and referred new issues to MHCC subcommittees regarding water heaters.

Highlights of HUD (Designated Federal Officer) Report and Comments to MHCC

Status of MHCC recommendations pending at HUD

• Final Rules for the proposed 2nd set of updates to the standards, changes to roof truss testing, and changes to 3282, Subpart I, are in Departmental Clearance.

• A final rule for On-Site Completion of Construction is still being developed by HUD staff.

• HUD is still working to develop a proposed rule on a proposal developed by MHI regarding ground anchor testing. HUD is also working on changes to the regulations regarding Primary Inspection Agencies.

MHCC recommendations need a cost benefit analysis

HUD's Designated Federal Officer (DFO), Henry Czauski, reported that the MHCC/DFO must present to the committee its recommendations with an economic cost/benefit analysis. The recommendations must be in a format consistent with the Administrative Procedures Act (APA) regarding proposed rules and should include a preamble.

Manufacturers need to adhere to regulations regarding Alternative Construction

During discussion of hinged roof designs and Alternative Construction (AC) letters Mr. Czauski noted that there have been numerous instances where manufacturers are not following the regulations under 3282.14 regarding Alternative Construction. If the industry members demand a timely response it is imperative that complete information is provided and regulations regarding inspections, labeling and reporting be followed.

DOE has not communicated on energy efficiency proposals

In response to a question by a committee member, HUD reported that it has had no recent conversations with the Department of Energy regarding energy efficiency standards, although the law requires it, and a recent Congressional directive, sought by MHI, directs DOE to also consult with the MHCC.

Highlights of MHI’s Public Remarks to MHCC

MHI staff provided the following public testimony during each of the three public comment periods:

• Recommended that the MHCC consider HUD’s inappropriate action regarding enforcement of the new design standards for southern pine lumber.

• Urged the committee to review and comment, if necessary, on the recent and pending changes to the NDS standard for southern pine lumber.

• Recommended that the MHCC review HUD’s guidelines for quality assurance under the procedural and enforcement regulations and codify the guidelines.

• Expressed concern about lack of transparency and timely action by HUD and the MHCC on MHCC recommendations.

• Thanked HUD for recent actions regarding preemption and the City of Richland, Mississippi.

• Announced that MHI is working on an industry-based energy efficiency standard and hopes to bring it before the MHCC early in 2013.

GAO Report Published on Indoor Air Quality to Coincide with MHCC Meeting

Coincidently, related to MHCC’s recommendation on indoor air quality, the Government Accountability Office (GAO) issued a report entitled “Manufactured Housing Standards – Testing and Performance Evaluation Could Better Ensure Safe Indoor Air Quality” (available at www.gao.gov/products/GAO-13-52.) The report was requested by several members of Congress last year to examine indoor air quality standards for manufactured housing.

The report's key findings conclude that some provisions of the HUD Code provide a lower margin of safety against a carbon monoxide exposure incident than those for site-built homes. The report concluded that the primary reason for the differences in ventilation standards for manufactured homes and site-built homes is that the HUD Code has not been updated and has not kept pace with standards tied to ventilation and air quality for site-built homes. This is despite recommendations by the MHCC in 2009 and 2010 to update various ventilation standards and carbon monoxide requirements. The GAO report is consistent with MHI’s position that the HUD Code, to remain viable, must be updated.  

Lois Starkey, Vice President, Regulatory AffairsLois Starkey, Vice President, Regulatory Affairs, Manufactured Housing Institute (MHI)

MHARR Letter to DOE – Energy Efficiency Standards for Manufactured Housing

March 29th, 2010 No comments

Manufactured Housing Association for Regulatory Reform
1331 Pennsylvania Avenue, NW a Suite 508
Washington, DC 20004

202-783-4087
Fax 202-783-4075

March 5,2010

VIA ELECTRONIC FILING

Ms. Brenda Edwards
U.S. Department of Energy
Building Technologies Program
6th Floor
950 L’Enfant Plaza, S. W.
Washington, D.C. 20024

    Re: Energy Efficiency Standards for Manufactured Housing
    Docket No. EERE-2009-BT-BC-0021

Dear Ms. Edwards:

The following comments are submitted on behalf of the Manufactured Housing Association for Regulatory Reform (MHARR). MHARR is a national trade association representing the views and interests of producers of manufactured housing regulated by the Department of Housing and Urban Development (HUD) pursuant to the National Manufactured Housing Construction and Safety Standards Act of 1974, as amended, 42 U.S.C. 5401, et sec. (Act).

I. INTRODUCTION

On February 22, 2010, the Department of Energy (DOE) published an Advance Notice of Proposed Rulemaking (ANPR) seeking public comments relevant to the development, by DOE, of energy efficiency standards for manufactured homes. Although the construction and safety of manufactured housing, since 1976, has been comprehensively regulated by HUD pursuant to federal standards that include energy conservation and efficiency criteria (see e.g., 24 C.F.R. 3280.501, et sec.), DOE, pursuant to section 413 of the Energy Independence and Security Act of 2007 (EISA), was directed by Congress to establish separate energy efficiency standards for manufactured housing within four years of the date of enactment of EISA. For the Preserving the American Dream of Home Ownership Through Regulatory Reform reasons set forth below, DOE should not proceed with the promulgation or implementation of any standards that are not identical to the existing HUD energy conservation standards until the production and availability of affordable, non-subsidized HUD Code manufactured housing for lower and moderate-income consumers recovers to levels at least comparable to those that existed prior to the enactment of EISA in 2007.

II. COMMENTS

When Congress adopted EISA in 2007, it did not foresee the collapse of the HUD Code manufactured housing market that has occurred since that time and that continues today. Prior to EISA, in 2006, the HUD Code manufactured housing industry, which primarily serves lower and moderate-income American families, produced 117,373 homes. This figure represented a significant decline from 2001 production of 193,120 homes and an even greater decrease from 1998 production levels that approached 400,000 units, but was consistent with previous cyclical industry declines. Since 2007, however, manufactured housing production and sales have fallen dramatically, as a result of the near unavailability of either public or private consumer financing for manufactured home purchases, as well as the failure of the HUD manufactured housing program to fully implement reforms mandated by Congress in the Manufactured Housing Improvement Act of 2000.

During 2009, the condition of the manufactured housing industry continued to deteriorate, as production and sales of new HUD Code manufactured homes fell to 49,683 homes, the lowest production level in the industry’s history. This represents a nearly 90% decline in production over a period of ten years and reflects a catastrophic loss of affordable, non-subsidized housing opportunities for American consumers. It also reflects the closure of production facilities — from approximately 420 in 1998 to 120 today — with the resultant loss of thousands of manufacturing jobs and thousands more jobs lost in other sectors of the industry, including component suppliers, home installers, home transporters, retailers, manufactured housing communities, and finance and insurance providers.

In light of this unprecedented decline and the extreme hardship that it entails for both the industry and consumers, the federal government should not — at this time — impose costly new energy conservation mandates combined with a totally new DOE enforcement system that would parallel the existing HUD enforcement system. Such mandates would inevitably result in substantial increases in the purchase cost of manufactured housing for hard-pressed consumers who cannot obtain purchase financing now. This will exclude even more Americans from the dream of home ownership, in an economy where private mortgage insurance is currently not available for manufactured home transactions and many, if not most manufactured housing consumers, already cannot afford the minimum 20% down payment required by lenders and the Government Sponsored Enterprises (i.e., Fannie Mae and Freddie Mac) which securitize home loans.

Moreover, manufactured homes are already subject to HUD energy conservation standards that result in a relatively tight thermal envelope, consistent with overall affordability, and are carefully balanced against concerns related to air exchange and condensation within the home living space. Any change to the standards could potentially upset that balance, with unforeseen and unintended negative consequences given the unique environment and construction of manufactured homes.

Consequently, for all of these reasons and because Congress, in 2007, could not have foreseen the unprecedented decline of the manufactured housing market and resulting hardships for consumers and the industry, MHARR urges DOE to delay the development, implementation and enforcement of any new manufactured home energy conservation standards, that are not identical to the existing HUD Code energy standards, until such time as industry production levels and the availability of affordable, nonsubsidized manufactured housing for lower and moderate-income consumers return to pre-2007 levels. Such a delay would also benefit consumers by allowing additional time for the implementation of mandates in other laws – such as the “duty to serve underserved markets” and FHA Title I manufactured housing program improvements mandated by the Housing and Economic Recovery Act of 2008 (HERA) — that are designed to restore and expand the availability of consumer financing for manufactured homes.

Sincerely,
Mark Weiss
Senior Vice President
Manufactured Housing Association for Regulatory Reform
1331 Pennsylvania Avenue, N. W.
Suite 508
Washington, D.C. 20004
(202) 783-4087 (Office)
(703) 509-9489 (Direct)
(202) 783-4075 (Fax)
mmarkweiss@aol.com (Email)
cc: Mr. Danny Ghorbani, MHARR